IT for Managers

GLIM, Chennai
Starting with 5 points
Carr Prescription
Framework
• Managerial Funda- Alignment and Grid
• Understanding Infrastructure-CV
• Competitive Advantage?
• Demystifying eCommerce
• Decision Making
• BI
• ERP/CRM/SCM
• Security
• Fad?? IOT and assessing emerging technologies
• Acquiring Systems
• Big Data, Web and Social Analytics
• IT Governance
McFarlan Strategic Grid and
Alignment model
Session 2
 Spending on Information Technology and Profitability

Return on Equity - %

7
 McFarlan’s Strategic Grid

LOW Strategic impact of future systems HIGH

LOW
Support Turnaround
Applications which improve Applications which may be of
management and performance future strategic importance.
but which are not critical to the
Strategic impact of business.
existing systems

Factory Strategic
Applications which are critical to Applications which are crucial
sustaining existing business. for future success.

HIGH

8
 Strategic Alignment Model

Taken from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1):472-484.
Information Systems
Infrastructure
Session 3
Components of an IS Infrastructure
3-11

The IS infrastructure enables

processing, storage, and
transmitting of data
Components
• Hardware
• Software
• Communications and
collaboration networks
• Databases
Issues with Managing the IS Infrastructure
• Obsolescence
• Storage Needs
• Space and Facility
Requirements
• Energy Consumption
• Demand Fluctuations

3-12
 What is Cloud Computing?
• Cloud Computing is a general term used to describe a new
class of network based computing that takes place over the
Internet,
• basically a step on from Utility Computing
• a collection/group of integrated and networked hardware,
software and Internet infrastructure (called a platform).
• Using the Internet for communication and transport
provides hardware, software and networking services to
clients
• These platforms hide the complexity and details of the
underlying infrastructure from users and applications by
providing very simple graphical interface or API (Applications
Programming Interface).

13
 What is Cloud Computing?
• In addition, the platform provides on demand
services, that are always on, anywhere, anytime and
any place.
• Pay for use and as needed, elastic
• scale up and down in capacity and functionalities
• The hardware and software services are available to
• general public, enterprises, corporations and businesses
markets

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 Cloud Computing Characteristics
Common Characteristics:

Massive Scale Resilient Computing

Homogeneity Geographic Distribution

Virtualization Service Orientation

Low Cost Software Advanced Security

Essential Characteristics:

On Demand Self-Service
Broad Network Access Rapid Elasticity
Resource Pooling Measured Service

15 Adopted from: Effectively and Securely Using the Cloud Computing Paradigm by peter Mell, Tim
Grance
 SaaS Maturity Model

Level 1: Ad-Hoc/Custom –
One Instance per customer

Level 2: Configurable per

customer

Level 3: configurable &

Multi-Tenant-Efficient

Level 4: Scalable, Configurable

& Multi-Tenant-Efficient

16 Source: Frederick Chong and Gianpaolo Carraro, “Architectures Strategies for Catching the Long Tail”
 Different Cloud Computing Layers
MS Live/ExchangeLabs, IBM,
Application Service
Google Apps; Salesforce.com
(SaaS) Quicken Online, Zoho, Cisco

Google App Engine, Mosso,

Application Platform Force.com, Engine Yard,
Facebook, Heroku, AWS

Server Platform 3Tera, EC2, SliceHost,

GoGrid, RightScale, Linode

Storage Platform Amazon S3, Dell, Apple, ...

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 Virtualization
• Virtual workspaces:
• An abstraction of an execution environment that can be made
dynamically available to authorized clients by using well-defined
protocols,
• Resource quota (e.g. CPU, memory share),
• Software configuration (e.g. O/S, provided services).
• Implement on Virtual Machines (VMs):
• Abstraction of a physical host machine,
• Hypervisor intercepts and emulates instructions from VMs, and allows
management of VMs,
• VMWare, Xen, etc. App App App

• Provide infrastructure API: OS OS OS

• Plug-ins to hardware/support structures Hypervisor

Hardware
Virtualized Stack
 Cloud-Sourcing
• Why is it becoming a Big Deal:
• Using high-scale/low-cost providers,
• Any time/place access via web browser,
• Rapid scalability; incremental cost and load sharing,
• Can forget need to focus on local IT.
• Concerns:
• Performance, reliability, and SLAs,
• Control of data, and service parameters,
• Application features and choices,
• Interaction between Cloud providers,
• No standard API – mix of SOAP and REST!
• Privacy, security, compliance, trust…

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 Cloud Taxonomy

20
 Session 4
Consolidation and Competitive Advantage
Basic 5 Types + BM+ Framework + Infrastructure
Analysis of AVA-Step 1
• Who does this?
• Rough(MACRO) Business Model
• Buy- Stock- Transport- Sell- ∆x
• Locational Asset Based
• Private Label
• SKD Operations
Step 2
• Strategic Grid
• Issues?
• Opacity- No clear picture about stocks, sales, cash position, purchase and people- term
used-”everyday is an adventure….”
• Weak on HR and no intention to strengthen
• Cash management
• Product non availability- lost opportunities
• Data not available for planning- dead inventories, obsolete and non moving stocks
• Too many human errors- time and money consuming
• Existing systems- HO- Excel based trackers, emails and telephones. At POS just
phones and billing system
• Analysis
Step 3
• Capability of Product: ODOO
• Seamless collaboration
• Automated HR processes
• Excellent cash and accounts management
• BI tools embedded for predictions
• Crystallized work flow
• If all the bases are covered then: GRID quadrant is FACTORY
• Can it be enhanced for better RoI?
Step 4- Road map for Primary and secondary
solution
Step 5- Infrastructure
• Immediate • Quick Pros and Cons
• MTS • Pros
• OS • Cost advantage
• OS • Fast deployment
• Airtel Corporate Mobility • Reliability
• Hiring consulting firms
• Cons
• Future • Future compatibility
• STS • Dependency
• Mobility development
• On boarding basic staff
Future Strategic Issues
• Human less hybrid model- 24x7x365
• eCommerce layer
• B2B sales
• Centralized decentralization
• New strategic ventures- franchising operations and IT
Consolidation and Summary
• Start with support and lead to Strategic
• Keep low footprint and cover all the bases
• Low investment adopt fast approach
Competitive Advantage
• Nature of Competition
• Brand
• Industry
• Form
• Generic
• Michael Porter
• Rivalry amongst the existing players
• Bargaining power of Suppliers
• Bargaining power of Customers
• New products
• Substitute products